Hello, In the case of Independent Directors U/s 149(6)(d)(i), Is the limit of 2% of paid up capital held by a relative to be seen independently in each of the company, Subsidiary, Associate & Holding or is it to be seen cumulatively? Thank you.
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This discussion clarifies the application of the 2% paid-up capital limit for independent directors under Section 149(6)(d)(i) of the Companies Act. Participants confirm that the limit, which also has a monetary threshold of ₹50 lakh, is to be considered cumulatively across a director's holding in the company, its subsidiaries, associates, and holding company. This cumulative approach ensures a consistent application of the independence criteria.